Core Points - The strike by Air Canada flight attendants, involving 10,000 workers, has led to significant flight cancellations and poses a threat to the global cargo network [1][3] - The strike was triggered by disagreements over compensation and working conditions, with the union demanding salary increases to match rising living costs [2][4] - The Canadian government intervened by announcing mandatory arbitration, but the union rejected this order, claiming government bias towards the airline [1][5] Summary by Sections Labor Dispute and Strike - The collective agreement between Air Canada and the Canadian Union of Public Employees (CUPE) expired this year, prompting negotiations that have been ongoing for months [2] - The union is focused on salary, benefits, and working conditions, seeking increases that reflect high inflation and living costs [2] - Air Canada proposed a 38% total salary increase over four years, with a 12% to 16% raise in the first year, which included the union's demand for "boarding pay" [2] Impact of the Strike - The strike commenced at 1 AM on August 16, with CUPE accusing Air Canada of delaying negotiations and not presenting a sincere proposal [3] - Air Canada, as the largest airline in Canada, transports approximately 130,000 passengers daily and operates nearly 200 flights to the U.S., with a global cargo network affecting 50 countries [3] Government Intervention - Following the strike, the Canadian Minister of Labour announced mandatory arbitration, citing risks to the transport of essential goods like medicines and organs [4] - Despite the government's intervention, the union plans to challenge the arbitration in court and continue the strike until a fair proposal is presented [5] Recovery Efforts - Air Canada anticipates a gradual return to normal operations within 7 to 10 days and is communicating with customers regarding rescheduling and refunds [6] - Some flights resumed on August 17, but the standoff between the union and the airline continues, with the government overseeing the arbitration process [6]